Having issues getting deal closed because of appraisal delays!

Having issues getting deal closed because of appraisal delays!

Tyler VanWinklePro Member
Member since 2020 · 8 posts · 1 vote

Hello BP friends!

We were scheduled to close on our first deal on August 6th.  The Duplex we have under contract had a roof leak during showings and the current owners insurance took care of a new roof and fixed the inside.  I was told by my mortgage broker and RE agent that we were having issues getting an appraiser scheduled to look at the property because of work load and all the refi's taking place. 

First issue, the appraiser went to site and did a drive by and said that there is potential commercial use so he could not do the appraisal and it needed re assigned.  

Second issue, next appraiser goes to site and inspects the vacant unit and then the second unit tenant says they may have Covid-19 and its best not to go in.  (completely understand but why did someone not communicate with the tenant?)  

Third issue, now in between all of this it has been difficult getting an appraiser scheduled and we come off the quarantine and try and get that appraiser back out, he passes as he does not feel comfortable.  Next appraiser is scheduled and actually calls me personally two days before he plans on looking at the property about making sure someone is on site.  I actually give him the sellers agent and my agents number telling him he will have to get with them to make sure he can get in the occupied unit.  He says he will reach out and make sure all is good and the sellers agents can meet the morning of so he does not waist a trip.  Low and behold the occupied unit is locked and he can not get in to look at it!  

What do I do at this point?  Who is responsible for scheduling this and where is the breakdown in communication?  I feel like I am out of the loop and every time I talk to my agent or the mortgage broker they seem like they don't have much info either.  Has anyone had similar issues recently?  Any suggestions on how to better organize or get this handled is much appreciated!

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  • Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    6y

    Hey @Tyler VanWinkle, I'm sorry to hear of this frustrating experience!  This happens all too often in seasons where "the wheels are coming off".  Lenders (and therefore appraisers) are running faster than any of their systems are built to run (with very few exceptions). and the way that plays out in the system is typically through delayed appraisals, sloppy appraisals, communication lags from lenders and appraisers, etc.  Unfortunately there is little to no consequence to you (as the purchaser) or the agents for this.  If the appraisal comes in 2 weeks late?  Tough!  Appraiser showed up 1 week after it was due back and then had to reschedule?  Tough!

    On the agent side . . . the listing agent should be responsible for arranging any visit with the tenant (in compliance with either the local Tenant Landlord laws and/or the specific lease details with regards to the Notice required to enter).  IF the property notice is served then authorized (by the landlord) entry can happen.  So, your agent should be working with the listing agent to arrange these times and then the listing agent should be there with a key (or know that the tenant will be present and allow entry) in order to facilitate the appraisal.

    So, in a perfect world ^^ happens.  Right now all systems are running a bit hot, so there's no telling what will happen, but if your agent works hand-in-hand with the listing agent, then whenever it is that the appraiser decides to show up again it should be a "go"

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "What do I do at this point?"

    Tell your broker to draft and get a mutually accepted extension.  Seems simple enough since it's the fault of 3rd parties and not you.

  • Tyler VanWinklePro Member
    OP
    Member since 2020 · 8 posts · 1 vote
    6y

    @Will Fraser Thanks for the knowledge!  The appraiser, agents, and tenants finally all got on the same page and it got appraised yesterday!   

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